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UBS Technology and Services Conference June 8, 2009 NASDAQ : BBOX
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Company Confidential 2 Black Box Network Services Forward-Looking Statements - Any forward-looking statements contained in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this presentation. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Risk factors are included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2009 and our other filings with the Securities and Exchange Commission (the “SEC”). We can give no assurance that any goal, plan or target set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments. GAAP Reconciliation -This presentation also includes, as a supplement to United States Generally Accepted Accounting Principles (“GAAP”), certain non-GAAP financial measures. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Pursuant to the requirements of the SEC’s Regulation G, we provide in our SEC filings additional information regarding these non- GAAP financial measures, including a reconciliation of them to their most comparable GAAP financial measures, management’s explanations regarding the use and usefulness of non-GAAP financial measures and the limitations associated with the use of non-GAAP financial measures. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measurements, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
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Terry Blakemore President and CEO
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Company Confidential 4 Black Box Network Services » The largest independent provider of major communications and infrastructure technologies Hotline Products Data Infrastructure Voice Communications
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Company Confidential 5 A Global Company 192 offices in 141 countries » Serving more than 85% of the Fortune 100
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Company Confidential 6 Capabilities $1 billion annual revenue Voice Communications 60% Data Infrastructure 19% Hotline Products 21% Source: Company 2009 Form 10-K.
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Company Confidential 7 Capabilities Remote MonitoringNetwork Security Voice over IPUnified CommunicationsTraditional Telephony Voice Communications Solutions: 60% of revenue
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Company Confidential 8 Strategic Advantage: Our Communications Portfolio & Partners 25-year relationship 2M ports on maintenance 289 certifications Coverage: U.S., Canada, U.S. Federal Government 25-year relationship 2M ports on maintenance 289 certifications Coverage: U.S., Canada, U.S. Federal Government Relationships around the globe 325,000 ports on maintenance 133 certifications Coverage: U.S. Relationships around the globe 325,000 ports on maintenance 133 certifications Coverage: U.S. No. 1 U.S. channel partner 25-year relationship 1M+ ports on maintenance Over 1,000 certifications Coverage: U.S. No. 1 U.S. channel partner 25-year relationship 1M+ ports on maintenance Over 1,000 certifications Coverage: U.S. Leader in Pure IP Telephony Added to portfolio in 2007 11,500 ports on maintenance Coverage: U.S., Canada, UK and Australia Leader in Pure IP Telephony Added to portfolio in 2007 11,500 ports on maintenance Coverage: U.S., Canada, UK and Australia No. 1 channel partner in North America 700,000+ ports on maintenance 167 certifications Coverage: U.S., Canada No. 1 channel partner in North America 700,000+ ports on maintenance 167 certifications Coverage: U.S., Canada
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Company Confidential 9 Capabilities Networking Data Centers Data Networking Structured Cabling Digital Signage, CATV & Video Data Infrastructure Services: 19% of revenue
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Company Confidential 10 Capabilities Custom Solutions Hotline Products: 21% of revenue CablesCabinets & RacksKVMRouters, Switches
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Company Confidential 11 Start-to-Finish Services Entrance Facility Equipment Room Telecommunications Room Backbone Desktop Horizontal Cabling » From the cable entry point to the desktop » Inside-the-building experts
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Company Confidential 12 Worldwide Market Size Voice Communications$50B Data Infrastructure3B Hotline Products7B Total Worldwide Market$60B Communications and networking products and services
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Company Confidential 13 Key Objectives Deliver the highest quality technical support services and products to our clients around the world. Achieve operating margin and cash flow targets. Supplement organic growth with high quality M&A activities.
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Mike McAndrew Chief Financial Officer
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Company Confidential 15 Well-Diversified Revenues Revenue by Industry Source: Derived from Company data and Company’s 2009 Form 10-K. 15
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Company Confidential 16 Well-Diversified Revenues Revenue by Geography Revenue by Client Size Revenue by Client Type Source: Derived from Company data and Company’s 2009 Form 10-K.
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Company Confidential 17 Revenue Visibility Backlog represents expected revenue related to executed client purchase orders or contracts that are estimated to be complete within 180 days of quarter end. Source: Derived from Company data and Company’s 2009 Form 10-K.
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Company Confidential 18 Solid Sustainable Margins * See attached reconciliation Source: Derived from Company data and Company’s 2006 and 2009 Form 10-K.
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Company Confidential 19 GAAP/Non-GAAP Reconciliation Source: Derived from Company data and Company’s 2006 and 2009 Form 10-K.
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Company Confidential 20 Consistent Positive Cash Flow Source: Derived from Company data and Company’s 2006 and 2009 Form 10-K.
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Company Confidential 21 Balance Sheet Statistics 20052006200720082009 DSO Days5754535553 Inventory Turns6.47.37.27.18.5 Capex (M)$3.5$4.1$5.9$3.2$2.2 Capex as % of Rev.0.7%0.6% 0.3%0.2% Headcount3,3713,2954,5814,3134,542 Debt / Equity.3 to 1.2 to 1.4 to 1.3 to 1.4 to 1 Source: Derived from Company data and Company’s 2006 and 2009 Form 10-K.
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Company Confidential 22 Business Framework Operating Margin Percentage » Flexible cost structure, revenue visibility Operating Margin Dollar Growth » Contribution DSO » Operating CF focus, balance sheet strength Revenue Growth » Markets, clients, M&A
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Company Confidential 23 Liquidity At March 31, 2009 $24 million in cash $350 million syndicated line of credit » $248M drawn down » Leverage ratio - 2.2, Covenant < 3.0 » Interest Coverage Ratio – 10.5, Covenant > 3.0 » Borrowing rate – LIBOR +.875% = 1.9% » Expires January 2013
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Company Confidential 24 Black Box Network Services (BBOX) » Well-Diversified Revenues » Solid, Sustainable Margins » Consistent, Positive Cash Flow
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NASDAQ: BBOX
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